Whether it’s a party, wedding or corporate event, the people of Dubai love to arrive in style – and they’re willing to pay for the privilege.
This is just one of the many brilliant reasons to start a limousine business out here in this part of the world. In fact, such is the demand to drive up looking a million dirhams that the limo rental market is predicted to grow at a CAGR of 7.7% up to 2024.
In this article, we’ll explore the key considerations of setting up in this industry, including:
- Benefits of starting a limousine business in Dubai, UAE
- Steps to start a limousine business in Dubai, UAE
- Cost to start a limousine business in Dubai, UAE
- Things to consider when starting a limousine business in Dubai, UAE
- Why start your company with BIZ?
Benefits of starting a limousine business in Dubai, UAE
Let’s start with a benefit that I’ve touched upon already – demand. With its appetite for luxury and a population often looking to impress, Dubai is always likely to support a thriving limousine rental industry.
It’s not only weddings, parties and events that drive demand. With thousands of businesses travellers arriving and departing from the UAE’s airport, luxury shuttle services may also provide a steady revenue stream.
Then you have to consider the many benefits of starting a business of any kind out here in the UAE. There is the country’s 0% tax rate on both corporate and personal income, its low VAT rate of just 5%, and its simple and straightforward company formation process.
Steps to start a limousine business in Dubai, UAE
Here are the five steps to obtain your limousine license in Dubai, UAE. When you work with the expert team at Business Incorporation Zone (BIZ), we can guide you through the entire process, liaising with all relevant authorities along the way.
Step 1 – Outline your business activities
The first step when starting any business out here in the UAE is to clearly define your business activities. This is to ensure that you are correctly licensed to carry out your intended operations.
When starting a limousine hire company, this is a fairly straightforward process. The business activity description that you require is Luxury Motor Vehicles Services in the transport, shipping and storage category.
Step 2 – Choose your trade name
Next up, you’ll need to choose a trade name for your limousine hire business. Keep in mind at this stage that you cannot include any offensive or blasphemous language or the names of any well-known organisations in your chosen company name.
You also need to use your full name if naming your company after yourself. For example, Eric Dier Limousines is permitted but E Dier Limousines is not.
It is also a good idea to put forward several suggestions just in case your first choice is already in use by another business.
Step 3 – Submit your licence application
You are now ready to make your limousine licence application. You will require a mainland commercial licence to undertake this activity. This means your application is made to the Dubai Department of Economic Development, or the local equivalent if you choose to set up in another emirate.
Most of this process takes place online and with the right support, you can usually have your licence within just a few days. As part of the process, you will need to submit documentation. This may include:
- Completed application form
- Passport copies for directors and shareholders
- Bank reference letter
- Copy of business plan
Step 4 – Get your residency visa
To live and work in the UAE, you will require a residency visa. This process involves biometric scanning, a fitness exam, medical, chest X-ray and blood test.
As the holder of a UAE residency visa, you can also sponsor applications for your dependants. These include your spouse, children, dependent parents, and domestic staff such as housekeepers and drivers.
Step 5 – Open a corporate bank account
Finally, you’ll need a corporate bank account to freely send and receive payments in the UAE. This is not always the easiest process for non-GCC citizens, but BIZ can help. We’ll match you with the most suitable financial institution based on your specific requirements.
Cost to start a limousine business in Dubai, UAE
A limousine business licence in the UAE costs in the region of AED 23,000. However, there is much more to consider.
On top of this amount, you will need to account for the cost of visas, premises, staff, vehicle expenses such as insurance, and any additional permits required to trade. This includes registering all workers with the Ministry of Human Resources & Emiratisation and gaining approval from the Roads and Transport Authority.
For a detailed quotation, personalised to your exact requirements, get in touch with the team at BIZ.
Things to consider when starting a limousine business in Dubai, UAE
When starting a limousine business, some things take care of themselves. Your offering is clear – you’ll take passengers from A to B in luxury transport. But, of course, you’re far from the only company offering this service in Dubai.
That’s where branding comes in. It’s vital that you can set your business apart from its competitors. This could be through attention-grabbing advertising, competitive pricing or special in-car services.
You’ll also need to consider the best way to get this message in front of your target audience. In most cases, this is through social and online advertising which offers a fast, simple and relatively cheap method of promotion. However, you should also consider other channels such as networking events or direct mail campaigns.
Finally, home in on your niche. With many limousine companies vying for attention, focusing on a specific industry segment can be a good way into the market. This could be a particular service such as airport runs or an underserved area within Dubai. Once you have a foot in, you can expand your offering and sets your sights on a larger market share.
Why start your company with BIZ?
Once you’ve made your decision to start a limousine business in the UAE, the next one is to decide to set up with Business Incorporation Zone. We are the experts in everything related to business setup in Dubai and make the whole process fast, simple – and even enjoyable.
We can assist with mainland licences, commercial, industrial, service and general trading licences. And that is just the beginning. We’re also on hand to manage your visa application and help you open your corporate bank account.
Our expert team understands that no two businesses are alike. So, they’ll always take the time to understand what you need and tailor our licensing packages to your requirements.
From inception to completion, we’re by your side. So why delay? Get in touch today to experience this exceptional level of service for yourself.